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`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
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`NYSCEF DOC. NO.
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`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
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`SUPREME COURT OF THE STATE OF NEW YORK
`
`COWTY OF NEW YORK
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`Plaintiff,
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`Index No. .150479/2016
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`AFFmAWT'm OPPOSITION
`‘
`To CROSS-MOTION
`
`uagainst-
`
`AB FUNDING CORPORATION, CFC SPECIALTY
`PROGRAM MANAGERS;- LLC, BIG-APPLE FIRE
`SPRINKLER. C0, IMO, NEW YORK STATE
`DEPARTMENT OF‘TAXATION '85 FINANCE,
`NEW YORK CITY DEPARTMENT OFFINANCE,
`ALEXANDER GUREV-ICH, ELLA GUREVICH,
`MITCHELL GUREVICH, “John Doe" and “Jane-
`Doe,“ the true names of‘said‘ defendants being-
`unknown to plaintiff; the parties intended to be the
`persons or entities having 'or claiming an :interestjin.
`the premi‘ses'de'seribed in the complaint .by :vi'rtue of'
`being aitenant or occupant in all or pan ofi said.
`premises,
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`
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`ALEXANDER CONDOMINIUM, BY ITS BOARD
`OF MANAGERS,
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`
`
`
`
`
`
`
`
` Defendants.
`
`STATE OF NEW YORK
`J 55.:
`
`)
`
`NASSAU
`
`)
`
`COUNTY OF
`
`CARL CESARANO, being duly swam deposes and says:
`
`I.
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`I am a, principal ‘of Cesarano & Khan, .PC, :a certified pdblie-accduntanwfinn and the
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`auditgrs for plaintiff Alexander Condominium, by, its Board of Managers (the “Condominium“ and the
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`lof6
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`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 0'4EH2017. 179:10 AM_
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`“Beard,” respectively).
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`I personally handle the-Condominium‘s "account and! am personally familiar
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`with the facts-and cir‘c‘u'rnStances set forth below;
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`2‘.
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`Irespeetfiilly subm‘it'this affidavit in opposition to the'cross-mo'tion of defendant AB
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`Funding Corporation (*‘AB‘ Funding”) for an orderidismissin'g theact'ion for. failure tojoin 250 East
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`Borrower, LLC (the "Sponsor")zas a necessary party,‘ or in the altemative, for an order granting leave to
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`add the Sponsor as‘ a defendant to this action..
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`3..
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`Ihave read-rhe- affirrnation o‘fRyan 'P. KaupeliS, dated April 15, 2016 (theffKaupelis
`
`Affirmation”) and ”the affidavit o'fGene'Kiselman, sworn to April 15, 20.16 (the “Ki‘se'lman Affidavit") in
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`support ofAB Funding’s cross-motion and I disagree with the statements contained therein with respect
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`to the work performed by my firm” and the conclusions my firm reached with "respect to the assertions of
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`the Sponsor that. it is entitled to certain credits for advances it allegedly made on behalf of. the
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`Condominium. See Kaupelis Afiinna'ti‘o’n at.1[1113-14;.Ie’ise1man Affidai‘tifiat W10.-] 1 'andEx. C to the
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`K‘iselman Affidavit.
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`4.
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`As set forth in .AB Funding’s cross-motion,- the Sponsor was the sponsor of the
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`Condominium.
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`5‘.
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`On or about May 4. 20'] 1,. my'firm was engaged by the then Spenser-controlled Board of
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`the-Condominium to audit the Condominium’s‘books :and recordsand to prepare the tax returns and
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`financial Statement for the Condominium for the year ending April 30, 201 I, the Condominium's first full
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`yearof operations.
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`6.
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`The managing agent, Joe Taube (‘-‘Tanbe" , provided my firm with the Con‘d'o'mihium’s
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`books and records,,which‘ were audited by my firm and a draft ofthefinanciai. statement for the year
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`ending April. 30, 2011 wasprepared. At the time, ho‘th-Taub‘e and the Condominiums president, Eugene
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`'I’s’irkin '(3-‘T'sirkin“), certified to my {firm in -a representation letter, dated February 4, 2012, that all ofthe
`2
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`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEWWYORK __CQU_NTY CLERK 04m2017 10:10 AM
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`Condominium_’5!books and records 'had'been provided to? my-firm fol-the audit. We then finalized and
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`certified'the fiscal April 201 1 financial statement effective Feerai-y 4, 2012.
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`7.
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`Dyer One year later, in May 2013, after-My firm prepared some ofthe financial
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`statement for the year-ending April 30, 2012, I was contacted by defendant Alexander Gurevich
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`(“.Gurevich"), a principal .of‘the Sponsor, who advised me that the draft-2012 financialstatcment was
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`wrong in that it did not include-the amount Owed to the Sponson He advised me that instead of paying
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`common charges on all the Sponsor units, as required. pursuant to' the Condominium’s bylaws, the
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`Sponsor‘had-allegedly paid thousands of dollars in expenses on behalf of the Condominium and that the
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`financial statement my firm had prepared neglected to- include credits that were allegedly due to the
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`Sponsor dating back, to 2010..
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`8.
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`.
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`Thereafter, the Sponsor provided my firm with copies of the Sponsor's checkbook. lodgers
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`for Sponsor's accounts (not the Condominium's accounts) in TD Bank andJPlVlorgan Chase. The
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`checkbook ledgers merely reflected. the numerous checks the Sponsor had Written, The checkbook.
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`Iedgers did‘not show, which, if any; checks were Written. to payCondominium expenses and new
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`advisedGurevich.
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`9.
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`'Gurevich' then tequestedfil‘hube and Tsirkin to highlight the checkbook 'ledgers to show
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`the-checks written for ”the-payment ofCond'omini‘urn, expenses, 'w'hichj they did, HoWéver, 'without cepies
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`ofthe underlying "invoiCes or contracts,;my firm- was unable to confirm that thechecks written were in
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`payment ofthe Condo‘minium's expenses.
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`10..
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`Subsequently, Gureyich provideda boxof cancelled chec'kswhich allegedly supported
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`the' advances the. Sponsor was claiming.- However,-after'a.thorou'gh review of the checks provided by the
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`$ponsor‘, my firm; determined that we could not substantiate the credits the Sponsor was demanding
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`because. the checks were, not. accompanied by corresponding contracts or invoices. it was simply not
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`3
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`3of6
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`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
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`possible to verify that the checks Written by the Sponsor related to the Condominium or to expenses that
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`were the Condominium‘s responsibility.
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`11,
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`Consequently, while the financial statements my firm prepared for 2012, 2013, 2014 and
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`2015 took into account the credits claimed by the Sponsor, the notes to the financial statements made
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`clear that-the Sponsor hadan unsubstantiated claim and that the Condominium Was initially investigating
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`the cl'aim‘and later actiuely disputing it. For example, note 12 to the April'20132 financial statement,
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`provides:
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`Sponsor Claim and Prior-Period Adjustments:
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`For financial statement- purposes, the Condominium recognized
`certain Sponsor credits and related expenses, for theperiod May 18,
`20.10 (commencement of operations) to April 30, 2013, totaling
`$383,158. Such credits and. expenseswere recorded by the
`COndomlniUm, for financial statement- purposes, however there is a
`possibility that some of these creditsandexpenses recorded should not
`have been recognized by the Condominium. The Sponsor used such
`credits as an offset against unpaid” common charges. Further, there were
`expenses relating to said time per icd, which Were not timely accounted
`for, which require-adjustment.
`
`The Condominium’s Board of Managers is aggressively pursuing
`investigation”, 'r'eco‘nciliat'ion and collection of these credits and eXpenses.
`The likelihood of-the‘ Condominium recovering these credits and
`expch5¢s cannot be predicted at this time.
`
`As a result, the; balance. of accumulated :deficit at April 30, 201 l
`was restated, fr‘om amounts previously reported ‘to reflect the Sponsor
`credits and operating expenses of‘$4'l,,921 (net of Sponsor concession of
`$46,529) not recorded on'the books of the Condominium‘s managing
`agent during the period May 18, 2010 through April 30, 2011. The net
`Sponsor concessionreflect'ed'herein is sabject to change upon.
`completion c'f'Board investigation. The-inclusion and/or recognition of
`the Sponsor claim or canoession herein is not intended to préjudice the
`Board with respect to its continued "investigation ofthesematwm.
`
`4 of 6
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`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
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`(Copies 'o'ftheCondominiUm's financial. statements for fiscal yearerOl 1, 2012, 2013, 2014 and 2015 are
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`l
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`annexed collectively hereto as Exhibit‘J-Q)
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`12.
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`Significantly, because the Board was initially investigating the Sponsor’s claim and later
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`actively disputing it, the financial statements for fiscal years 2012 and 2013 were not finalized by my firm
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`and certified until September 2014 and the financial statement-for fiscal year 2014 'Was not finalized. and
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`certified by my firm. until December :2015.
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`13..
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`Furthermore, contrary to the statements in the Kaupelis Affirmation and the Kisel man
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`Affidavit, my firm did.10;: determine “that the Sponsor-’5‘ Advances significantly exceeded the-common
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`charges assessed againstthe Spenser-owned units” (Kaupelis Affirmation ,‘ll 13), nor does Exhibit C to the
`KiselmanAffidavit‘ which was prepared by‘m'y firm indicate suchdetennination.
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`1:4.
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`In .or-aboutlApriI 2014-, Gurevic'h requestedi firm to prepare“ an analysis from the
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`Sponsor’s perspective as to the amount of its claim and as a courtesy we provided him with the “Sponsor
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`Analysis” annexed as Exhibit'C to the Kiselma‘n Affidavit. The “Sponsor Analysis” was prepared using
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`the Sponsor’sunsubstantiated records and merely reflects-the amount the Sponsor claims is owed to it for
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`advances it-purporte'dly-made on behalf ofthe Condominium.
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`15.
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`In contrast, the audited financial statements my "firm prepared continued to state
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`unequivocally/that the Sponson’s claim had yetto be substantiated. Indeed, the” footnotes in the April 30,
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`2014 and April 30, 2015 financial. statements' could not be more clear. For example, footnote 13 of the
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`April 330, 2015 financial statement sets forth? in relevant part}:
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`The Condominium‘s Balance Sheet reflects an amount Due front.
`Sponsor of $502,364 and an amount Due to Sponsor of $373, I 5 8, for a
`net amount due of$129,-206. The Due from Sponsor amount reflects
`common charges,- assessments and; fees itha‘t‘th‘e Condominium shows as
`unpaid relating. to Sponsor. units, including unitsthat Sponsor has since
`sold. . ..The Due to Sponsor- amcunt'reflects‘ credits that the Spenser is
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`5
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`-mm5'of'6
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`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
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`claiming are due- it for Condominium expenses that it has paid, including
`Utilities, the resident manager, contractors and insurance.
`
`The Board of'Manager‘s; has not agreed to these. claims, and is
`disputing Sponsor’s right to take certain offsets. Notwithstanding such.
`dispute, the Condominium, for financial statement purposes, has
`recognized these Sponsor credits ”and related expenses, covering the
`period from May '18; 2010 (commencement of operations) to-April 30,
`20.15. There is. a possibility, howeVer! that some of these credits and
`expenses recorded-by the Condominium shouldnot have been
`recognized; if it is determined that. any ofthese cred itsand expenses
`should not lee-recognized. then the net amoUnt- due fi-om Sponsor will
`increase.
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`16.
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`In short, my firm has not determined that Sponsor is entitled to the credits it is claiming
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`and the-eudited-financial statements my firm has prepared make that crystal clear. Accordingly; the
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`misrepresentations of fact set- forth in the Kaupelis Affirmation and .Kiselman Affidavit should be
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`disregarded by‘the Coort.
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`WHEREFORE, the crass-motion ofdefendant AB Funding Corp. should be
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`denied in its entirety.
`
`~.._..
`:51! L.
`
`
`CARL 'CES'ARANO
`
`Swan: :59);
`
`lore me this .g%
`
`day of
`
`‘
`
`[.120
`
`
`
`. .-
`SAMI'S. 'ASLAM
`Notary Poblichtateot New york
`,. Nogomseassqes
`QualitiedinNassaujC u_ ty
`CommissionExpires_':]_%; -.
`
`-
`
`Notary
`
`7
`1-,
`
`60156
`
`

`

`INDEX NO. 150479/2016
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`__ m--
`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`WW
`:3ffi13ifl31h‘5fl‘flfifiéé 2.21:???-
`7rgifgflfl‘QWIAZ‘l'J/Ljififi'flfflga‘
`.731!
`NYSCEF DOC. NO. 90
`NY§§§€EPOSOC .1“qu .9 957
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`EXHIBIT K ~
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`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
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`NYSCEF DOC. NO. 90
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`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF NEW YORK
`
`ALEXANDER CONDOMINIUM, BY ITS BOARD ,
`OF MANAGERS,
`
`-against—
`
`Plainfifi‘,
`
`
`
`
`
`EAST 49TH STREET DEVELOPMENT II, LLC,
`250 EAST BORROWER, LLC, CONTINENTAL
`FINANCE CORPORATION, CFC SPECIALTY
`PROGRAM MANAGERS, LLC,
`CONTINENTAL REALTY, LLC, OCEAN
`AVENUE CONSTRUCTION, INC, 250
`CONSTRUCTION, INC., PAV—LAK
`INDUSTRIES, INC., GUREVICH &.
`ASSOCIATES, LLP, JANOFF& GUEEVICH,
`LLP, ALEXANDER GUREVICH, MITCHELL
`GUREVICH, GENNADY KISELMAN A/K/A
`GENE KISELMAN, MICHAEL STEINBERG,
`ELLIOT SPITZER. A/K/A ELIYAHU SPHZER,
`EUGENE TSIRKIN, PETER R. SEVERMAN,
`MAURICE SETTON, TAUBE MANAGEMENT
`REALTY, LLC, JOSEPH M. TAUBE, SYDNESS
`ARCHITECTS, RC. and K. JEFFRIES
`SYDNES S,
`
`-
`- Defendants.
`TO THE ABOVE NAMED DEFENDANTS:
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Index No.
`
`Date offiling with the
`Clerk of Court:
`
`SUM‘MONS WITH NOTICE
`
`
`Plaintifi'designates
`New York County
`as the place of trial
`
`The basis of venue is
`
`the residence of Plaintiff:
`250 East 49th Street
`New York, New York
`
`YOU ARE HEREBY SUWONED to answer the Complaint in this action and
`to serve a copy ofyour Answer, or, if the Complaint is not served with this Summons, to serve a
`Notice ofAppearance, on the Plaintiffs attorneys within twenty (20) days after the service ofttu‘s
`Summons, exclusive ofthe day ofservice (or within thirty (30) days after the service is complete
`ifthe Summons is not personally delivered to you within the State ofNew York); and in case Of
`your failure to appear or answer, judgment will be taken against you by default for the relief
`demanded herein.
`
`Dated: New York, New York
`May 5, 2016
`
`_
`
`SCHWARTZ SL - New York, New York 9
`
`(212) 743-3000
`
`lofd
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM ‘
`NYSC 3F DOC. NO.
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`Defendants’ Addresses:
`
`EAST 49TH STREET DEVELOPMENT II,
`LLC
`
`o/o Janoff & Gurevioh
`216 East 49th Street
`New York, New York 10017
`
`CONTINENTAL FINANCE
`CORPORATION
`o/o Gurevich & Associates, LLP
`215 East 490 Street
`New York, New York 10017
`
`CONTINENTAL REALTY, LLC
`2821 Avenue X
`
`Brooklyn, New York 11235
`
`250 CONSTRUCTION, INC.
`c/o Peter Cotelidis, Esq.
`200 Old Country Road
`Mineola, New York 11501
`
`250 EAST BORROWER, LLC
`c/o Eugene Tsirkin
`250 East 49‘” Street, 3'rd Floor
`New York, New York 10017
`
`CFC SPECIALTY PROGRAM MANAGERS,
`LLC
`216 E31349"1 Street
`New York, New York 1001 ’7
`
`OCEAN AVENUE CONSTRUCTION, INC.
`2226 McDonald Avenue
`Brooklyn, New York 11223
`
`PAV-LAK INDUSTRIES, INC.
`325 Marcus Boulevard
`Hauppauge, New York 1 178 8
`
`GUREVICH & ASSOCIATES, LLP
`216 East 49"1 Street
`
`New York, New York 10017
`
`ALEXANDER GUREVICI—I
`47 Charcoal Hill Road
`
`Westport, Connecticut 06880
`
`GENNADY KISELMAN A/K/A GENE
`KISELMAN
`55 Thixton Drive Grandview
`
`Hewlett, New York 11557
`
`JANOFF& GUREVICH, LLP
`215 13215149th Street
`New York, New York 10017
`
`MITCHELL GUREWCH
`47 Charcoal Hill Road
`
`Westport, Connecticut 068 80
`
`MICHAEL momma
`1504 East 34th Street
`Brooklyn, New York ‘1 1234
`
`ELLIOT SPITZER AfK/A ELIYAHU
`SPITZER
`
`156 Grandview Avenue
`
`Monsey, New York 10952
`
`EUGENE 'I‘SIRKIN
`10 Shore Boulevard, Apt. 4K
`Brooklyn, New York 11235
`
`PETER R. SILVBRMAN
`e/o Silverman Shirt & Byme PLLC
`381 Park Avenue South, 16th Floor
`New York, New York 10016
`
`MAURICE SETI‘ON
`15 Gateway Drive
`Great Neck, New York 1 1021
`
`o 25 A
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
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`TAUBE MANAGEMENT REALTY, LLC
`655 Third Avenue, 29th Floor
`New York, New York 10017
`
`JO SEPH M. TAUBB
`655 Third Avenue, 29“1 Floor
`New York, New York 10017
`
`SYDNESS ARCIflTECTS, RC.
`2 West 45'” Street, Suite 1504
`New York, New York 10036
`
`K. JEFFRIES SYDNESS
`2 West 45“ Street, Suite 1504
`New York, New York 10036
`
`3
`
`#4
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
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`RECEIVED NYSCEF: 04/03/2017
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`NOTICE:
`
`The nature ofthis action against defendants EAST 49TH STREET DEVELOPMENT 11,
`LLC, 250 EAST BORROWER, LLC, CONTINENTAL FINANCE CORPORATION, CFC
`SPECIALTY PROGRAM MANAGERS, LLC, CONTWENTAL REALTY, LLC, OCEAN
`AVENUE CONSTRUCTION, INC, 250 CONSTRUCTION, INC, PAV—LAK INDUSTRIES,
`INC., GUREVICH 8e: ASSOCIATES, LLP, JAN01"ch GUREVICH, LLP, ALEXANDER
`GUREVICI-I, MITCHELL GUREVICH, GENNADY KISELMAN A/KlA GENE KISELMAN,
`MICHAEL STEINBERG, ELLIOT SPITZER AfK/A ELIYAI-IU SPITZER, EUGENE TSIRKJN,
`PETER R. SILVERMAN, MAURICE SETTON, TAUBE MANAGEMENT REALTY, LLC and
`JOSEPH M. TAUBE is to recover damages resulting horn, among other things, said defendants’
`breach ofcontract, breach ofwarranty, breach offiduciary duty, fi-aud, negligence, negligent
`misrepresentation, violations of General Business Law §§ 349 and 350, money wrongfully had
`and received, conversion, misappropriation offunds and wrongful distribution of assets (11a,
`fi‘audulent conveyances) in connection with the construction, sale, marketing, repair, Operation
`and management of condominium units in the residential condominium building located at 250
`East 49'”:l Street, New York, New York (the “Building”).
`
`The nature ofthis action against defendants SYDNESS ARCHITECTS, RC. and K.
`JEFFRES SYDNESS is to recover damages resulting fi-orn, among other things, said defendants’
`breaches of contract and Baud in connection with their performance of architectural and/or
`engineering and/or consulting services at and for the Building.
`
`The reliefsought is damages in the amount of$10,000,000.00, or such greater amount as
`may be established at trial, together with interest thereon.
`
`Upon your failure to appear, Judgment will be taken against you by default for the sum of
`$10,000,000.00, together with interest thereon, and together with the costs and disbursements of
`this action.
`
`\805023v3
`
`

`

`m
`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`firflimffig‘mfl3'.amagfm5.751%;5533rgm‘g'gné‘gm]:I:1,513.1—:5-227: ;
`
`
`NYSCEF DOC. NO. 90
`NYfi§§EEPOSOCNCNO. '.8
`-
`
`INDEX NO. 150479/2016
`IfiIBBEfig? ' 1 gc?407497/92/021061 6
`RECEIVED NYSCEF: 04/03/2017
`fl%%fiEDNJ§§éEE=F=o§/4a§fifioé7
`
`EXHIBIT L
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
`
`NYSCEF DOC. NO.
`90
`NYSCEF DOC. NO. 90
`
`150479/2016
`INDEX NO. 150479/2016
`INDEX NO~
`
`
`
`
`
`04/03/2017
`R«.C«.IV«.‘D \IYSCEF:
`RECEIVED NYSCEF: 04/03/2017
`
`
`
`ALEXANDER CONDOMINIUM
`
`Financial Statements
`
`to April 30, 201 I
`
`‘
`
`for the period May.13, 2010 ,_
`(commencement of operations)
`
`Cesarano & Khan, PC
`Certified Public Accountants
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`
`FILED: NEW YORK COUNTY CLERK 04 @2017 10:10 AM
`
`NYSCEF DOC. NO.
`90
`NYSCEF DOC. NO. 90
`
`150479/2016
`INDEX NO. 150479/2016
`INDEX NO'
`
`
`
`
`
`RaCnIVnD uYSCEF:
`04/03/2017
`RECEIVED NYSCEF: 04/03/2017
`
`
`
`Cg,
`I7
`
`Cesarano 85 Khan, PC
`Certified Public Accountants
`
`INDEPENDENT AUDI: ORS' REPORT
`
`To the Board ofManagers and Unit Owners of
`Alexander Condbminium:
`
`We have audited the' accompanying balance sheet of Alexander Condominium (the "Condominium”l as of
`April 30, 2011, and. the related statements of operations, members’ equity and cash flows for the period May 18, 2010
`(commencement of operations) to April 30, 2011. These financial statements are the responsibility of the
`Condominium‘s management. Our responsibility is to express an opinion on these financial statements based on our
`audit.
`
`We conducted our audit in‘ accordance with auditing standards generally accepted in the United States of
`America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
`financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
`supporting the amounts and disclosures in the financial statements. An. audit also includes asseSsing' the accounting
`principles used and significant estimates. made by management, as wail as evaluating the overall financial statement
`presentation. We belieVe that our audit provides a reasonablo‘besis for our opinion,
`
`In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
`position of Alexander Condominium as of April 30, 2011, and the results of its operations and its cash flows for the
`period May 18, 2010 (commencement of operations) to April 30, 2011 in conformity with accounting principles
`generally accepted in the United States of America.
`
`Management has entitled the information about the estimates offitture costs of major repairs and replacements
`that accounting principles generally accepted in the United States of America require to be presented to supplement the
`basic financial statements. Such missing information, although not a part'of the basic financial statements, is required
`by the Financial _Accounting Standards Board, who considers it to be an essentialpart of financial reporting for placing
`the basic financial statements in an appropriate operational, economic, or historical. context. Our opinion on the basic
`financial statements is not affected by the missing information.
`'
`
`AWM K £[Id-kt C Fifi” ,pC/
`
`Floral Park, New York"
`February 4, 2012
`
`"
`
`.
`
`,_
`
`.
`
`_
`
`249-02 Jericho Turnpike, Suite 104, Floral Park, NY 11001 - Telephone: (516) 437-8200 - Facsimile: (516) 4378325
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
`
`NYSCEF DOC. NO.
`90
`NYSCEF DOC. NO. 90
`
`INDEX NO. 150479/2016
`INDEX NO~ 150479/2016
`
`
`
`
`
`RaCaIVaD VYSCEF: 04/03/2017
`RECEIVED NYSCEF: 04/03/2017
`
`ALEXANDER CONDOMINIUM
`
`-
`
`BALANCE SHEET
`
`April 3'0, 2011
`
`A§§ET§
`
`.
`
`Operating:
`
`Cash - HSBC Bank, USA — checking
`Escrow:
`
`Cash - HSBC Bank, USA - checking
`Reserve:
`
`Cristi - HSBC Bank, USA ~ money market
`Common charges and fees receivable .. unit cvmers
`Common charges and l‘ces receivable ~ Sponsor
`Prepaid insurance
`Prepaid maintenance contracts
`Property and equipment, net of accumulated
`
`depreciation of $254
`Utility deposits
`
`Total assets
`
`S
`
`29,388
`
`1,100
`
`38.686
`2,760
`l35,478
`8,857
`1,529
`
`2,286
`42,605
`
`3 263,289
`
`'
`
`I
`
`'E
`
`”
`
`'
`
`‘
`
`Accounts payable and accrued expenses
`Common charges received in advance
`Due to Sponsor
`Deposits payable
`income taxes payable
`
`Total liabilities
`
`Members" equity
`
`-
`
`I
`
`‘
`
`Total liabilities and members' equity
`
`S 139,236
`7,954
`81,193
`1,500
`500
`
`230,383
`
`n
`
`._
`
`I
`
`32,006
`
`
`3 263.289
`
`Tire accompanying notes are an integral
`part of thesa financial statements.
`
`2
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
`
`NYSCEF DOC. NO.
`90
`NYSCEF DOC. NO. 90
`
`INDEX NO. 150479/2016
`INDEX NO' 150479/2016
`
`
`
`
`
`RaCaIVaD VYSCEF: 04/03/2017
`RECEIVED NYSCEF: 04/03/2017
`
`ALEXANDER CONDOMINIUM
`
`STATEMENT OF OPERATIONS
`
`for the period May 18, 2010
`
`(commencement of operations)
`to April 30. 2011
`
`'
`
`REVENUES:
`
`Common charges- residential
`Common charges - commercial
`Interest and other income
`
`Total revenues
`
`EXPENSES:
`
`Wages
`Payroll taxes
`Payroll processing fees
`
`Utiiities - electric
`Utilities - heating
`Utilities — gas non heating
`Water and sewer
`Repairs and maintenance
`
`Maintenance contracts
`Supplies
`Uniforms
`
`Management fees
`insurance
`Professional fees
`Telephone
`Administrafivc
`Income taxes
`
`Total expenses before depreciation
`
`Deficiency of revenues over expensm before depreciation
`
`Depreciation
`
`-
`
`-
`
`-
`
`Deficiency ofrevenues over chenscs
`
`The accompanying notes are an integral
`
`part of these financial siatcments.
`
`3
`
`-
`
`5
`
`-
`'
`
`_
`"
`
`-
`
`3 660.286
`17,497
`471
`
`. 678.254
`
`202,318
`21,196
`2,835
`
`133,966
`90,984
`12,558
`78.335
`10,716
`
`15,599
`8,380
`4,325
`
`34,355
`48,921
`14,850
`6,070
`2,915
`500
`
`688.823
`
`(10,569)
`
`(254)
`
`S 1 10,823!
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
`
`NYSC3F DOC. NO.
`90
`NYSCEF DOC. NO. 90
`
`INDEX NO.
`150479/2016
`INDEX NO. 150479/2016
`
`
`
`
`
`
`
`3F:
`fiIVfiD VYSC
`04/03/2017
`RECEIVED NYSCEF: 04/03/2017
`
`ALEXANDER CONDOMINIUM
`
`STATEMENT OF MEMBERS' EQUITY
`
`for the period May 18, 2010
`
`(hommencement of operations)
`
`to April 30. 201 I
`
`Members‘ equity contribution
`
`Deficiency of revenues over expenses
`
`Balance as of'April 30, 2011
`
`$ 43,729
`
`(10.323)
`
`%&
`
`The accompanying notes arcan imcgral
`part of these financial statements.
`
`4
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
`
`NYSCI3F DOC. NO.
`90
`NYSCEF DOC. NO. 90
`
`INDEX NO .
`150479/2016
`INDEX NO. 150479/2016
`
`
`
`
`
`
`fiIVfiD \IYSCEF:
`04/03/2017
`RECEIVED NYSCEF: 04/03/2017
`
`ALEXANDER CONDOMINIUM
`
`STATEMENT OF CASH FLOWS
`
`for the period May 18, 2010
`
`(commencement of operations)
`to April 30, 2011
`
`
`CASH FLOWS FROM OPERATING ACTIVITIES:
`
`Deficiency of revenues over expenses
`
`Adjustments to reconcile deficiency of revenues over expenses
`to net-cash provided by-operating activities:
`
`Depreciation
`
`Changes in operating assets and liabilities:
`Common charges and fees receivable - unit owners
`Common charges and fees receivable - Sponsor
`Prepaid insurance
`Prepaid maintenance contracts
`Accounts payable and accrued expenses
`Common charges received in advance
`Due to Sponsor
`Income taxes payable
`
`Net cash provided by opetatin'g activities
`
`CASH FLOWS FROM INVESTING ACTIVITIES:
`
`Uti Iity deposits.
`Purchase of equipment
`Deposits payable
`
`Net cash used in investing activities
`
`CASH FLOWS FROM FINANCING ACTIVITIES:
`
`'Members' equity contribution
`Net cash provided by financing activities
`
`Net increase itt cash
`
`cash, beginning of year
`
`Cash, end of year
`
`SUMMARY OF CASH:
`
`'
`
`'
`
`'
`
`Operating «- HSBC Bank, USA - checking
`Escrow - HSBC Bank, USA - checking
`Reserve - H3330 Bank, USA - money market
`Total cash
`
`SUPPLEM ENTARY MORMTION:
`
`Income taxes paid
`Interest paid
`
`The accompanying notes are an integral
`part of these financial statements.
`
`3 (10,823)
`
`254
`
`(2,760)
`(135,478)
`(8,857)
`(1,529)
`I39.236
`7,954
`81,193
`500
`
`69,690
`
`(42,605)
`(2,540)
`1,500
`
`(43,645)
`
`43,729
`43,729
`
`69.774
`
`.0.
`
`5 695774
`
`3 29.388
`1.700
`...-..-.-_._
`38.686
`
`$ 69.774
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
`NYSCI
`3F DOC. NO.
`90
`NYSCEF DOC. NO. 90
`
`150479/2016
`INDEX NO. 150479/2016
`INDEX NO~
`
`
`
`
`
`SF:
`R*.C fiIVfiD \IYSCI
`04/03/2017
`RECEIVED NYSCEF: 04/03/2017
`
`ALEXANDER CONDOMINIUM
`
`NOTES to FINANCIAL STATEMENTS
`
`May 18, 2010
`(commencement ofoperations)
`to April 30,_20]I
`
`
`1. Qrgarmatm
`
`Alexander Condominium (the "Condominium"; was organized September 28, 2007 pursuant to
`Article 9-13 of the Real Property Law of the State of New Ym'k, for the purposes or maintaining and
`preserving the common property of the Condominium. The Condominium connncnced operations on May
`18, 2010. The property consists of 75 residential units and 4 commercial unit located at'2‘50 East 49‘" Street,
`New York, New York.
`
`A Board of Managers, elected by the unit owners, governs the affairs of the Condominium.
`Managers, as such, receive no compensation for their services. The Board of Managers retains a
`management agent
`to provide on—site property management as well as certain administrative and
`bookkeeping services.
`
`2. Qate of Management Review;
`
`In preparing the financial, statements, the Condominium has evaluated events and transactions fer
`potential recognition or disclosure through February 4, 2012,
`the date the financial statements were
`available to he issued.
`
`3. Summary of Significant Accounting Policies:
`
`Basis ofPresentation:
`
`The accompanying financial statements are prepared on the accrual basis of accounting;
`accordance: with accounting principles generally accepted in the United States ofAmerica.
`
`in
`
`Bewasiveness ofEstimates:
`The preparation of financial statements in cantor-unity with accounting principles generally
`accepted in the United States of America requires management ‘to make estimates and assun'rptions that
`reflect the reported amounts of assets and liabilities and discloSure of contingent assets and liabilities at the
`date of the financial statements and the reported amounts of revenues and expenses during the reporting
`period. Actual results could differ from those estimates.
`
`Unit Owner Receivables:
`
`The Condominium's policy is to retain legal counsel and place liens on the properties of unit
`owners whose common charges are 90 days in arrears. It is the opinion of the Board ofManagers that the
`Condominium will ultimately collect
`the common charges that are delinquent, and accordingly, no
`allowance for 'uncoilectible accounts wasdeem‘ed necessary.
`
`Recognition ofAssets:
`The Condominium capitalizes all personal property assets, if any, to which it holds title or has
`other evidence of ownership. Depreciation is computed on the straight-line method over the estimated
`useful life of the asset. Real property, common areas and related improvements to such property are not
`capitalized in the fumncial statements. These properties are owned by the individual unit owners in
`C0man.
`
`Continued
`
`6
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
`
`NYSC3F DOC. NO.
`90
`NYSCEF DOC. NO. 90
`
`IND
`EX NO.
`150479/2016
`INDEX NO. 150479/2016
`
`
` fiIVflD
`
`
`
`VYSCEF:
`04/03/2017
`RECEIVED NYSCEF: 04/03/2017
`
`ALEXANDER CONDOMINIUM.
`
`NOTES to FINANCIAL STATEMENTS, Continued
`
`May 18, 2010
`(commencement of operations)
`to April 30, 2011
`
`Member’s Eguifl:
`In accordance with the Offering Plan, all memliers must contribute an amount equal to trio month’s
`common charges as working capital at closing.
`
`93mm:
`Common charges are based on an annual budget as noted in Schedule A and B of the
`Condominium offering plan. Unit owners are billed monthly in accordance with the common interest
`appurtenant to the unit.
`
`4.
`
`Properly and Eguipment:
`
`Property and equipment was comprised of the following:
`
`Equipment
`Less: accumulated depreciation
`
`5. Accounts Pafible and Accrued Expenses:
`
`Accounts payable and accrued expenses consisted of the following:
`
`Utilities - heating
`Utilities - electric
`Water and sewer
`Professional fees
`
`$2, 540'
`
`[254!
`$2,286
`
`$65,248
`34,114
`16,817
`9,500
`4,355
`3,685
`1,678
`1,524
`762
`500
`
`420 _
`339
`294
`$139,236
`
`Management fees
`Wages and payroll taxes
`Supplies
`Metal and floor refinishing
`General building repairs
`Plumbing
`Uniform.
`
`.
`
`.
`
`.. .
`
`Payroll processing fees
`'Utilities— gas non heating
`
`Continued
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/03/2017 10:10 AM
`FILED: NEW YORK COUNTY CLERK 04m2017 10:10 AM
`
`NYSCEF DOC. NO.
`90
`NYSCEF DOC. NO. 90
`
`INDEX NO.
`150479/2016
`INDEX NO. 150479/2016
`
`
` uIVuD
`
`
`VYSCEF:
`04/03/2017
`RECEIVED NYSCEF: 04/03/2017
`
`ALEXANDER CONDOMINIUM
`
`NOTES to FINANCIAL STATEMENTS, Continued
`
`May 18,2010
`(commencement of operations)
`to April 30, 201.1
`
`6. Repairs and Maintenance:
`
`Repairs and maintenance consisted ofthe following:
`
`Metal and floor refinishing '
`Plumbing
`Decorating
`Elevator
`
`General buildingrepairs
`Sprinkler
`Locksmith
`
`7- teem:
`
`$2,722
`2,191
`1.595
`1,550
`1,387
`950
`301
`
`$10,715
`
`the Condominium may annually elect to be taxed as homeowners’
`For Federal tax purposes,
`association under Section 528 of the Internal Revenue Code,